HANG YICK HLDGS (01894) plans to carry out capital restructuring and fundraising activities.

HANG YICK HLDGS (01894) announced that the Board of Directors plans to carry out a capital restructuring and fundraising activity, involving (i) share consolidation; (ii) increase in authorized share capital; and (iii) rights issue. The company proposes to consolidate every 20 issued and unissued shares into 1 consolidated share based on the consolidation ratio. The Board of Directors proposes to increase the company's authorized share capital from HK$38 million (divided into 3.8 billion shares) to HK$76 million (divided into 7.6 billion shares) (or 380 million shares of consolidated shares after the consolidation takes effect). The increase in authorized share capital will be effective only after approval by the shareholders at an Extraordinary General Meeting by an ordinary resolution. Upon the consolidation of shares and increase in authorized share capital taking effect, the Board of Directors proposes to offer rights issue at a subscription price of HK$0.46 per share for every 4 rights shares for every 1 consolidated share held on the record date, in order to raise approximately HK$84.7 million (assuming no change in the total number of issued shares before or on the record date after taking into account the effect of share consolidation). The rights issue is available only for eligible shareholders to subscribe, and will not be offered to excluded shareholders. If fully subscribed, the net proceeds from the rights issue are estimated to be approximately HK$82 million, with 64.0% to support the Group's existing and potential new projects, and 22.0% to repay debts including trade and other payables and accrued expenses.